Cardlytics Inc (CDLX) 2024 Q1 法說會逐字稿

Good day and thank you for standing by, and welcome to the Cardlytics Earnings Conference Call. (Operator Instructions) Once again, please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Nick.

美好的一天，感謝您的耐心等待，歡迎參加 Cardlytics 收益電話會議。（操作員指示）再次提醒您，今天的會議正在錄製中。現在我想將會議交給今天的第一位發言者尼克。

Listen, good evening, and welcome to the Cardlytics First Quarter 2024 financial results. Before we begin, let me remind everyone that today's discussion will contain forward looking statements based on our current assumptions, expectations and beliefs, including expectations regarding our future financial performance and results, including for the second quarter of 2024, our capital structure and various product initiatives and improvements. For a discussion of the specific risk factors that could cause our actual results to differ materially from today's discussion, please refer to the Risk Factors section of the Company's 10 Q for the quarter ended March 31st, 2024, which has been filed with the SEC. Also during this call, we will discuss non-GAAP measures of our performance. Gaap financial reconciliations and supplemental financial information are provided in the press release issued today and the eight K that has been filed with the SEC, which you can find on the Investor Relations section of the Cardlytics website. Today's call is available via webcast, and a replay will also be available on our website.

聽著，晚上好，歡迎閱讀 Cardlytics 2024 年第一季財務表現。在開始之前，讓我提醒大家，今天的討論將包含基於我們當前假設、預期和信念的前瞻性陳述，包括對我們未來財務業績和結果的預期，包括2024 年第二季度、我們的資本結構和各種產品措施和改進。有關可能導致我們的實際結果與今天的討論產生重大差異的具體風險因素的討論，請參閱公司截至 2024 年 3 月 31 日的季度 10 Q 的風險因素部分，該報告已向 SEC 備案。此外，在本次電話會議中，我們也將討論非公認會計準則的績效衡量標準。今天發布的新聞稿以及已向 SEC 提交的 8 K 中提供了 Gaap 財務調節表和補充財務信息，您可以在 Cardlytics 網站的投資者關係部分找到這些信息。今天的電話會議可透過網路直播進行，我們的網站上也將提供重播。

Joining us on the call today is Cardlytics, CEO cream, Tim Somani, and CFO, Alexis DCNS. Following their prepared remarks, we'll open the call to your questions.

今天加入我們電話會議的是 Cardlytics、Cream 執行長 Tim Somani 和財務長 Alexis DCNS。在他們準備好的發言之後，我們將開始回答您的問題。

With that said, let me turn the call over to Karim.

話雖如此，讓我把電話轉給卡里姆。

Good evening, and thank you for joining our Q1 2020 for earnings call. On our last earnings call, I highlighted the progress we made in 2023 and early 2024, we rebalanced our cost structure, resolve the SROs dispute invested in our tech and products, renegotiated partner agreements and signed a new bank partner. We also discussed how we could now fully focus on execution and growth as well as addressing our capital needs. Since the call, we made significant steps to remove the capital concerns around the Company. We raised $50 million in cash and repurchased the majority of outstanding 2020 convertible notes at prices below par and issued new convertible notes not due until 2029, coupled with our positive adjusted EBITDA results for full year 2023 and now also in Q1 2024. We believe we have fully addressed our balance sheet issues, ensuring our bank partners and advertisers have confidence to work with us in the long term. As we have completed these transactions and find ourselves on a path to sustained profitability, we are starting a new period for Cardlytics. We have slowly rebuilt the foundation of the business over the past 18 months, so we can now turn to our longer-term growth prospects. I am confident we have the technology products and the team to make significant growth a reality. While the full transition will take some more time and there will be some noise along the way we are making the necessary progress to ensure we finish 2024 with even stronger momentum.

晚上好，感謝您參加我們的 2020 年第一季財報電話會議。在我們上次的財報電話會議上，我強調了我們在2023 年和2024 年初的進展，我們重新平衡了成本結構，解決了投資於我們的技術和產品的SRO 爭議，重新談判了合作夥伴協議並簽署了新的銀行合作夥伴。我們也討論了我們現在如何能夠完全專注於執行和成長以及滿足我們的資本需求。自電話會議以來，我們採取了重大措施來消除圍繞公司的資本擔憂。我們籌集了5000 萬美元現金，並以低於面值的價格回購了大部分已發行的2020 年可轉換票據，並發行了2029 年到期的新可轉換票據，加上我們2023 年全年和現在2024 年第一季的調整後EBITDA 業績為正值。我們相信我們已經完全解決了我們的資產負債表問題，確保我們的銀行合作夥伴和廣告商有信心與我們長期合作。隨著我們完成這些交易並發現自己走上了持續盈利的道路，我們正在為 Cardlytics 開啟一個新時期。在過去 18 個月裡，我們慢慢重建了業務基礎，因此現在可以轉向更長期的成長前景。我相信我們擁有技術產品和團隊來實現顯著成長。雖然全面過渡需要更多時間，並且一路上會出現一些噪音，但我們正在取得必要的進展，以確保我們在 2024 年以更強勁的勢頭結束。

Our first quarter performance has us off to a good start to 2024, excluding Entertainment, which we saw at the end of 2023. Billings grew 12% over the first quarter of 2023, indicating strong interest from advertisers, redemptions, which as we said last earnings call, we view as our NovaStar were also up significantly more redemptions.

我們第一季的業績為 2024 年開了個好頭，不包括我們在 2023 年底看到的娛樂事業。比林斯比 2023 年第一季成長了 12%，這表明廣告商對贖回的強烈興趣，正如我們在上次財報電話會議上所說，我們認為 NovaStar 的贖回量也大幅增加。

I mean, more people are engaging with our program more frequently, which provides the best outcome for banks, their customers and advertisers. And importantly, adjusted contribution grew 27% over the first quarter of 2023. When excluding entertainment, adjusted contribution is an important metric that reflects our business performance as it is the money we keep from our billings after paying our customer rewards and bank revenue share. Additionally, driven by the strong top line performance, we finished the quarter with $0.2 million of adjusted EBITDA. This is the first time in our history that we have been positive in the first quarter, which is a seasonally lower billings quarter. Alexis will provide further details on all these financial metrics later in the call.

我的意思是，越來越多的人更頻繁地參與我們的計劃，這為銀行、銀行的客戶和廣告商提供了最好的結果。重要的是，調整後的貢獻比 2023 年第一季成長了 27%。當排除娛樂時，調整後的貢獻是反映我們業務績效的一個重要指標，因為它是我們在支付客戶獎勵和銀行收入份額後從帳單中保留的資金。此外，在強勁營收業績的推動下，本季末我們實現了 20 萬美元的調整後 EBITDA。這是我們歷史上第一次在第一季取得正面成果，這是一個季節性較低的帳單季度。亞歷克西斯將在稍後的電話會議中提供有關所有這些財務指標的更多詳細資訊。

We believe this momentum will continue in the second quarter, but bigger picture, we have much higher growth ambitions for the business and believe we can achieve sustained higher growth rates longer term, let me explain first, the macro environment.

我們相信這種勢頭將在第二季度持續下去，但從更大的角度來看，我們對業務有更高的成長雄心，並相信我們可以長期實現持續更高的成長率，讓我先解釋一下宏觀環境。

We benefit from market tailwinds as cookie-less identity resolution becomes essential for any business and card-linked offers become table stakes for our partners as opposed to cookies. We use purchase data to provide precise targeting insights and measurement for businesses looking to reach new customers better understand the existing UNKNOWN customers and increase frequency from their loyal customers. It's also clear that rewards are increasingly vital to our banking partners with continued regulatory pressure on traditional card benefit programs, and that loyalty is more important than ever for retailers who look to retain customers in the face of rising costs.

我們受益於市場順風，因為無 cookie 身分解析對於任何業務都至關重要，並且與卡片相關的優惠（而不是 cookie）成為我們合作夥伴的賭注。我們使用購買數據為希望吸引新客戶的企業提供精確的定位洞察和衡量，以更好地了解現有的未知客戶並提高忠實客戶的頻率。同樣明顯的是，隨著傳統卡福利計劃持續受到監管壓力，獎勵對於我們的銀行合作夥伴越來越重要，而對於在成本上升的情況下希望留住客戶的零售商來說，忠誠度比以往任何時候都更加重要。

Second, our investments intake and sales. Our recent upgrades and progress with our decisioning engine or AD. have laid the groundwork for ongoing innovation at a more agile pace than ever before. For example, we are currently building a dynamic marketplace, which will allow us to provide flexible campaign durations, need campaign optimizations, more timely reporting and dynamic pricing based on offer activations.

第二，我們的投資吸收和銷售。我們最近對決策引擎或 AD 進行了升級和進展。為以前所未有的敏捷速度進行持續創新奠定了基礎。例如，我們目前正在建立一個動態市場，這將使我們能夠提供靈活的活動持續時間、所需的活動優化、更及時的報告以及基於報價啟動的動態定價。

These improvements are critical to delighting advertisers and better aligning our U.S. business to the engagement centric pricing model that is driving our growth internationally.

這些改進對於取悅廣告商並使我們的美國業務更好地適應以參與為中心的定價模式至關重要，這種模式正在推動我們的國際成長。

We are not only investing in our tech, but have also started to reinvest in our agency team and our account management teams to better support more advertising clients. Investors will see bumpiness in our short-term expense numbers, but we are confident that we are making the right investments to exit 2024 with strong momentum.

我們不僅投資於我們的技術，還開始對我們的代理商團隊和客戶管理團隊進行再投資，以更好地支援更多的廣告客戶。投資者將看到我們的短期支出數據出現波動，但我們有信心做出正確的投資，以強勁的勢頭退出 2024 年。

Third, redemptions and engagement. We continue to make technology upgrades across our network.

第三，贖回和參與。我們繼續對我們的網路進行技術升級。

We're seeing ongoing signs of progress towards the North Star of driving redemptions and engagement.

我們看到在推動兌換和參與方面朝著北極星方向不斷取得進展的跡象。

While we still have a long way to go in achieving aspirations, the trends we discussed in Q4 remained consistent in Q1 as we saw a 30 percentage point difference in redemptions between customers of banks on 80 versus customers of banks, not on ADT. We are putting the right offers in front of the right users faster. And these offers are driving larger basket sizes and incremental purchases. As the results, we are consuming budgets more quickly and delivering more value within a campaign including more rewards to consumers. While we are not currently billing for all these added value due to campaign budget, it signals the capacity and potential for adjusted contribution growth in the future improving offer quality and increasing consumer redemptions is a trend we expect to continue, which will significantly increase the scale of outcomes we will deliver to our clients.

雖然我們在實現願望方面還有很長的路要走，但我們在第四季度討論的趨勢與第一季度保持一致，因為我們發現80 銀行客戶與ADT 銀行客戶之間的兌換存在30 個百分點的差異。我們正在更快地將合適的優惠提供給合適的用戶。這些優惠正在推動更大的購物籃規模和增量購買。結果，我們更快地消耗了預算，並在活動中提供了更多價值，包括為消費者提供更多獎勵。雖然由於活動預算，我們目前並未對所有這些附加價值進行計費，但這表明未來調整後的貢獻增長的能力和潛力，提高報價品質和增加消費者兌換是我們預計將持續的趨勢，這將顯著擴大規模我們將為客戶提供的成果。

And pardon me for scale. Scale is crucial to competing for bigger budgets in advertising, and we are growing our network, including by actively working towards onboarding our new US large bank partners. Marketers are investing in the few platforms that deliver the most meaningful and measurable outcomes and growing our network and shows clients benefit from the reach they need to scale their campaigns.

請原諒我的規模。規模對於爭取更大的廣告預算至關重要，我們正在擴大我們的網絡，包括積極努力加入我們新的美國大型銀行合作夥伴。行銷人員正在投資少數能夠提供最有意義和可衡量結果的平台，並擴大我們的網絡，並向客戶展示他們從擴大行銷活動所需的影響力中受益。

Relatedly, we are seeing strong growth potential pharma, our global investments as our international business grew over 50% year on year in Q1. We believe that we will keep similar growth levels for the next several quarters, especially as we look to increase our presence internationally fifth bridge by leveraging its unique and exclusive identity resolution capabilities. Rich is on a path to establishing itself as the new series in a cookie-less advertising world, our logical growth path to increasing our total addressable market means continuing to enhance our customer data platform product and pushing into new solution areas such as retail media, which is already responsible for 29% of digital ad spend. In the U.S., we launched Ripple, our retail media and data network to further establish our presence in the retail media market and deliver growth. And we have line of sight to onboarding a hundred million individual shopper profiles by year end. This would make Ripple one of the largest retail media networks in the country to further expand our retail media network solution. We are also working to allow brands to use the repo technology to export and access targeted audience segments, which will allow them to target customers through integrations with major DSPs such as the Trade Desk and live rent.

與此相關的是，我們看到製藥業和我們的全球投資具有強勁的成長潛力，因為我們的國際業務在第一季同比增長超過 50%。我們相信，我們將在接下來的幾季保持類似的成長水平，特別是當我們希望透過利用其獨特和專有的身份解析功能來增加我們在國際第五橋的影響力時。Rich 正在將自己打造為無 cookie 廣告世界中的新系列，我們增加總目標市場的邏輯成長路徑意味著繼續增強我們的客戶資料平台產品並進入新的解決方案領域，例如零售媒體、其中已經佔數字廣告支出的29%。在美國，我們推出了零售媒體和數據網路 Ripple，以進一步確立我們在零售媒體市場的地位並實現成長。我們的目標是在年底前建立一億個個人購物者檔案。這將使 Ripple 成為美國最大的零售媒體網路之一，以進一步擴展我們的零售媒體網路解決方案。我們也致力於允許品牌使用回購技術來匯出和存取目標受眾群體，這將使他們能夠透過與 Trade Desk 和 Live Rent 等主要 DSP 整合來定位客戶。

On the retail media network front, we've recently launched initial test campaigns with Nuix markets where Danone and craft targeting specific audiences using breaches data on individual shopping preference at the skew level and the report technology, the initial campaigns showed better performance on most indicators of campaign performance against benchmark averages. Success prompted these brands to launch a second round of campaigns with plans to expand to more reach for retailers in the future. This demonstrates the strong performance and demand for our audiences and segmentation with that capital needs addressed through our $50 million raise in new convertible notes, not due until 2029, we are focused on higher growth rates. Our Q1 results and projected Q2 results continue to give us confidence. We have strong tailwinds behind us, and we have scale that allows us to provide the best breadth and depth of offers for banks and measurable outcomes for advertisers. We are rapidly innovating our platform with major developments underway, including the dynamic marketplace. We are beginning to drive deeper engagement and are starting to see the results of our changes. We are also making the right short-term investments to drive longer-term growth and exit 2024 with strong momentum in our bridge business is continuing to show signs of progress, especially given our progress with Ripple, which sets us to be one of the largest retail media networks in the country. It is an exciting new period for Calnetix.

在零售媒體網路方面，我們最近在Nuix 市場啟動了初步測試活動，其中達能和craft 使用傾斜級別的個人購物偏好的違規數據和報告技術來針對特定受眾，初始活動在大多數指標上都表現出更好的表現比較基準平均值的行銷活動績效。成功促使這些品牌發起了第二輪活動，並計劃在未來擴大對零售商的影​​響力。這顯示了我們的受眾和細分市場的強勁表現和需求，透過我們透過新的可轉換票據籌集5000 萬美元來解決資本需求，該票據將於2029 年到期，我們專注於更高的成長率。我們的第一季業績和預計的第二季業績繼續給我們信心。我們背後有強大的推動力，我們的規模使我們能夠為銀行提供最廣度和深度的報價，並為廣告商提供可衡量的成果。我們正在快速創新我們的平台，正在進行重大開發，包括動態市場。我們開始推動更深入的參與，並開始看到我們改變的結果。我們也正在進行正確的短期投資，以推動長期成長，並以強勁的勢頭退出2024 年，我們的橋樑業務繼續顯示出進步的跡象，特別是考慮到我們在Ripple 方面取得的進展，這使我們成為最大的橋樑業務之一該國的零售媒體網絡。對於 Calnetix 來說，這是一個令人興奮的新時期。

Now I'll hand it over to Alexis to discuss our financial results.

現在我將把它交給亞歷克西斯來討論我們的財務表現。

Thank you, Karim. We are pleased with our financial results for the first quarter, driven by strength in redemptions, which indicates that our product initiatives are working as well as the material improvement to our balance sheet. For the first quarter, we performed in line with our guidance and delivered the third consecutive quarter of positive adjusted EBITDA, and we saw meaningful acceleration in billings from Q4 given Q1 is a seasonally weak quarter for the Company. This result is a testament to the work we have done to reengineer our cost base.

謝謝你，卡里姆。在贖回實力的推動下，我們對第一季的財務表現感到滿意，這表明我們的產品計劃正在發揮作用，並且我們的資產負債表得到了實質改善。第一季度，我們的表現符合我們的指導方針，並連續第三個季度實現了調整後的EBITDA 正值，考慮到第一季度是公司季節性疲軟的季度，我們看到第四季度的帳單大幅增長。這結果證明了我們為重新設計成本基礎所做的工作。

Now turning to our first quarter results My comments will be year-over-year comparisons for the first quarter, excluding Entertainment, which we sold in December 2023, unless stated otherwise. In Q1, billings reached 105.2 million, a 12% increase on a category basis. We continue to see strength in travel and everyday spend. The restaurant category also grew once again this quarter after rebuilding our sales team. More than half of our growth came from our top accounts spending more with us winning back key accounts and reducing churn. Our North Star redemptions, which drives consumer incentives on our income statement were up 20% to 37.6 million revenue, which is billings net of consumer incentives, but before partner share was 67.6 million up 8%. As we continued to refine 80, we are getting more effective at driving redemptions, and we believe redemptions should be seen as a leading indicator of demand in the short term, we may see outsized rewards as engagement accelerates beyond top-line growth due to our targeting and ranking improvements. We feel good about this dynamic, especially given adjusted contribution was $37.1 million, up 27%. Margin increased from 47% to 55% as a percentage of revenue and 31% to 35% as a percentage of billings, we are keeping more of every dollar we bill. Even while redemptions are accelerating about half of the operating leverage we are seeing is driven by our partner share renegotiations, which annualize in June with the rest driven by mix shift between banks, we believe adjusted contribution is a better long-term indicator for our business rather than GAAP revenue Turning briefly to segment results. U.s. revenue increased 6%. The UK continued to show very strong double digit growth at 56%, partially due to our auto-enrolment program with Lloyds as we mentioned, auto-enrollment means customers no longer have to opt into our offers program, which has allowed our UK sales team to sell and deliver larger budget. We expect to see very strong double-digit growth in the UK in Q2 as a result of auto-enrolment new leadership and our newest UK bank partner, Mondo, which is now live. Notably, our UK business is primarily on a cost per redemption pricing model. And we believe the US business will begin to see the benefits of shifting to similar models, which we plan to do later this year, albeit on a larger base brand revenue grew 1% due to the expansion of existing contracts and offset by the loss of a single existing customer. The redemption and partnership dynamics we've discussed do not impact bridge. So revenue is the key metric we use to assess the performance of this business. In Q1, we invested in foundational elements, including product design engineering architecture and go-to-market resourcing. We continue to grow the profiles in our database, and we are actively onboarding top regional grocers with a line of sight to 100 million profiles we believe we have the scale to be relevant to CPG customers. Adjusted EBITDA was 0.2 million. And as Karim said, the first time in the Company's history for adjusted EBITDA to be positive in the first quarter. Business Operating expenses came in lower than expected at 36.8 million. However, operating expenses should normalize in the mid to low 40s, given the investments we are making in our technology product and sales organizations in support of key growth initiatives.

現在轉向我們的第一季業績，除非另有說明，我的評論將是第一季的同比比較，不包括我們於 2023 年 12 月出售的娛樂業務。第一季的營收達到 1.052 億，以品類計算成長 12%。我們繼續看到旅行和日常支出的強勁勢頭。在重建我們的銷售團隊後，本季餐廳類別也再次成長。我們一半以上的成長來自於我們的頂級客戶支出增加，我們贏回了關鍵客戶並減少了客戶流失。我們的北極星兌換推動了損益表上的消費者激勵措施，收入增長了20%，達到3760 萬美元，這是扣除消費者激勵措施後的賬單，但在合作夥伴份額之前為6760 萬美元，增長了8%。隨著我們繼續完善80，我們在推動贖回方面變得更加有效，我們認為贖回應被視為短期內需求的領先指標，由於我們的參與度加速超過營收成長，我們可能會看到巨額回報。我們對這種動態感到滿意，特別是考慮到調整後的捐款為 3,710 萬美元，成長了 27%。利潤率佔收入的百分比從 47% 增加到 55%，佔帳單的百分比從 31% 增加到 35%，我們會保留更多的每一美元。儘管贖回正在加速，但我們看到大約一半的營運槓桿是由我們的合作夥伴股份重新談判推動的，該談判將於6 月進行年度化，其餘的則由銀行之間的混合轉移推動，但我們相信調整後的貢獻對我們的業務來說是一個更好的長期指標而不是 GAAP 收入 簡單地轉向部門業績。我們。收入增長 6%。英國繼續呈現非常強勁的兩位數成長，達到56%，部分原因是我們與勞合社的自動註冊計劃，正如我們所提到的，自動註冊意味著客戶不再需要選擇加入我們的優惠計劃，這使得我們的英國銷售團隊能夠銷售並提供更大的預算。由於自動註冊新領導層和我們最新的英國銀行合作夥伴 Mondo（現已上線），我們預計第二季英國將實現非常強勁的兩位數成長。值得注意的是，我們的英國業務主要採用每次贖回成本定價模式。我們相信，美國業務將開始看到轉向類似模式的好處，我們計劃在今年稍後這樣做，儘管由於現有合約的擴大，品牌收入增長了 1%，並被虧損的損失所抵消。有客戶。我們討論的贖回和夥伴關係動態不會影響橋牌。因此，收入是我們用來評估該業務績效的關鍵指標。在第一季度，我們投資於基礎要素，包括產品設計工程架構和上市資源。我們繼續擴大資料庫中的資料，並積極引入頂級區域雜貨商，目標是 1 億個資料，我們相信我們的規模足以與 CPG 客戶相關。調整後 EBITDA 為 20 萬。正如卡里姆所說，第一季調整後 EBITDA 為正值，這在公司歷史上尚屬首次。業務營運支出為 3,680 萬元，低於預期。然而，考慮到我們為支持關鍵成長計畫而對技術產品和銷售組織的投資，營運支出應該會在 40 多歲左右恢復正常。

Operating cash flow was negative 17.6 million. The first quarter is always seasonally low from a cash flow standpoint due to annual bonus payments, interest payments and timing of accounts receivable.

經營現金流為負1760萬。由於年度獎金支付、利息支付和應收帳款時間安排，從現金流的角度來看，第一季始終處於季節性較低水平。

Last quarter we introduced a new metric free cash flow in Q1, free cash flow was negative 22.4 million. However, we expect free cash flow to be positive in the second half of 2024.

上個季度我們引進了新的自由現金流指標，第一季自由現金流為負 2,240 萬。然而，我們預計 2024 年下半年自由現金流將為正值。

On the balance sheet we ended Q1 with 97.8 million in cash and cash equivalents, and we had 29.5 million of unused available borrowings under our line of credit as a reminder, we paid $20 million at the end of January as part of our settlement with SRS., which was offset by cash received from the $50 million equity offering in March, we also repaid the 30 million drawn on our line of credit in April. In addition, we repurchased $184 million of our outstanding 2020 convertible notes at prices below par value, partially via the issuance of $172.5 million of new convertible notes now due in 2029 through these transactions and the repayment of the line of credit, we have reduced the amount of debt that would have been considered current as of September 2024 to 46 million from $260 million. Absent other capital transactions. The convertible transaction settled on April first and will be reported in our Q2 financials.

在資產負債表上，我們第一季末有9780 萬現金和現金等價物，並且我們的信用額度下有2950 萬未使用的可用借款作為提醒，我們在1 月底支付了2000 萬美元，作為與SRS 結算的一部分..，這被 3 月份 5000 萬美元股票發行收到的現金所抵消，我們還償還了 4 月份從我們的信貸額度中提取的 3000 萬美元。此外，我們以低於票面價值的價格回購了 1.84 億美元未償還的 2020 年可轉換票據，部分是透過這些交易和償還信貸額度發行了 2029 年到期的 1.725 億美元新可轉換票據。 2024 年9 月，本應視為流動的債務金額從2.6 億美元增至4,600 萬美元。不存在其他資本交易。可轉換交易於四月一日結算，並將在我們第二季的財務報告中報告。

Lastly, MAUs were $168.5 million and RPU was $0.4 for the first quarter, an increase of 7% and a decrease of 2% respectively. The increase in MAUs was driven primarily by net new MAUs, and the decrease of RP was driven by 20% increase in redemptions.

最後，第一季的 MAU 為 1.685 億美元，RPU 為 0.4 美元，分別成長 7% 和下降 2%。MAU 的成長主要是由淨新增 MAU 推動的，RP 的下降是由贖回增加 20% 推動的。

Turning to our Q2 outlook for Q2, we expect billings between 115 and $126 million, revenue between 73 and 81 million, adjusted contribution between 40 and $45 million. Adjusted EBITDA between negative 3 million and positive 1 million. Our billings guidance represents 7% to 17% growth, excluding the sale of entertainment, I'd like to provide some additional color on what we are seeing in the top line. Billings continues to be driven by success in the everyday spend and travel categories, and our larger clients are spending more with us. We are focusing on getting new brands onto the platform and winning back lapsed brands. With these brands, we are seeing pilot programs convert into larger budgets based on strong campaign performance. We are expecting another quarter of elevated redemptions as we continue to see the benefits of improved targeting and ranking adjusted contribution is expecting 19% growth, excluding entertainment, at the midpoint of our guidance as previously stated, we expect operating expenses to increase to the mid 40s, excluding stock-based compensation due to the investments we are making in our technology product and sales teams and in support of key growth initiatives like dynamic marketplace and bridge. We continue to expect double digit billings growth for the full year 2024 and to be operating cash flow positive on a full-year basis with both accelerating as we enter 2025, we are focused on our North Star redemptions, and we expect to continue to drive consumer engagement, top line growth and full year positive adjusted EBITDA.

談到我們對第二季度的展望，我們預計帳單在 115 至 1.26 億美元之間，收入在 73 至 8100 萬美元之間，調整後的貢獻在 40 至 4500 萬美元之間。調整後 EBITDA 在負 300 萬至正 100 萬之間。我們的帳單指導代表著 7% 到 17% 的成長，不包括娛樂銷售，我想為我們在營收中看到的情況提供一些額外的資訊。比林斯繼續受到日常支出和旅行類別的成功推動，我們的大客戶在我們這裡的支出越來越多。我們專注於讓新品牌進入平台並贏回流失的品牌。透過這些品牌，我們看到試點計畫基於強勁的行銷活動成效轉化為更大的預算。我們預計另一個季度的贖回量將增加，因為我們繼續看到改進目標和排名調整貢獻的好處，預計將增長19％（不包括娛樂），按照我們之前所述的指導的中點，我們預計運營費用將增加到中點40 年代，不包括基於股票的薪酬，因為我們對技術產品和銷售團隊進行了投資，並支持動態市場和橋樑等關鍵增長計劃。我們繼續預計 2024 年全年的帳單將實現兩位數成長，並且全年營運現金流將為正值，隨著進入 2025 年，兩者都會加速，我們專注於北極星贖回，我們預計將繼續推動消費者參與度、營收成長和全年正調整EBITDA。

Now I'll turn it back to the operator for Quest and here at this time, we will conduct a question and answer session.

現在我會將其轉回給 Quest 的接線員，此時我們將進行問答環節。

(Operator Instructions) Kyle Peterson, Needham.

（操作員說明）Kyle Peterson，Needham。

Hey, good afternoon, guys. Thanks for taking the questions. I wanted to start off, I guess on some of the billings trends you guys saw throughout the quarter. I guess just given the timing of I guess you're now reporting towards the end of the first quarter was a little surprised you guys be a little closer to the low end of the guidance. So do you guys have any any like larger, whether it was slight cancellations or delays or anything you saw in the last two weeks of March?

嘿，下午好，夥計們。感謝您提出問題。我想從你們整個季度看到的一些帳單趨勢開始。我想，考慮到你們現在在第一季末報告的時間，你們有點驚訝你們離指導的低端更近了。那麼，你們有沒有類似的大型航班，無論是輕微的取消或延誤，還是您在三月最後兩週看到的任何情況？

Yes. Thanks for the question on. Look, we're still growing 12% on the top line and our adjusted contribution was 27%. So this is pretty good performance on a historically weak quarter and a pretty good acceleration from Q4, which was less than 5% growth but to answer your question more specifically on, yes, we're making a lot of changes to our network and our tech all at the same time and some of our partners are also making changes to their UX, which you're probably seeing on not all leading to higher engagement, which is why I say that rewards are really a leading indicator of demand on and So as Chris said in his remarks, we're consuming budgets more quickly, which is driving those higher redemptions. But in some cases, we can't bill for all of that demand yet and then we also had a few campaigns that didn't come through. So again, we're happy with the adjusted contribution growth of 27% and adjusted EBITDA still being positive, even more we're paying out more rewards than we expected.

是的。感謝您提出的問題。看，我們的營收仍成長 12%，調整後的貢獻為 27%。因此，在歷史上疲軟的季度中，這是相當不錯的表現，並且與第四季度相比有相當好的加速，第四季度的增長不到5%，但要更具體地回答你的問題，是的，我們正在對我們的網路和我們的網路進行很多改變。度，這就是為什麼我說獎勵實際上是需求的領先指標，所以正如克里斯在演講中所說，我們正在更快地消耗預算，這推動了更高的兌換。但在某些情況下，我們還無法滿足所有這些需求，然後我們也有一些活動沒有成功。因此，我們再次對調整後的貢獻成長 27% 感到滿意，調整後的 EBITDA 仍然為正，甚至我們支付的獎勵比我們預期的要多。

Okay. That's helpful. And then I guess just a follow-up on some of the moving pieces with the higher redemption rates. Is the one key to consumer incentives kind of as a percentage of billings. Is that a good proxy to use going forward? Or as redemption rates increase, should we expect that that percentage should continue to go up. Just trying to get some senses that kind of what the mix and redemption rates is going to be on the P&L in the near term?

好的。這很有幫助。然後我想這只是一些贖回率較高的活動的後續行動。消費者激勵的關鍵是帳單的百分比。這是一個很好的代理嗎？或者隨著贖回率的增加，我們是否應該預期該百分比會繼續上升。只是想了解近期損益表上的組合和贖回率是多少？

Yes, at least for Q2 were 17 to be similar. As you can see from the guidance ranges. Continuing to focus on our North Star redemptions is really the main focus right now and those tech initiatives are really paying off. So we continue to convert accounts to our new pricing models and excited to of this increased engagement that is higher than we've typically seen. And then the other portion of that is from the renegotiation of certain contracts, which will annualize in June. So you'll continue to see similar margins, but the growth rate may not be quite as high as we annualize that and that starts in Q3, obviously.

是的，至少第二季有 17 個類似的。正如您從指導範圍中看到的那樣。繼續關注我們的北極星兌換確實是目前的主要焦點，這些技術舉措確實得到了回報。因此，我們繼續將帳戶轉換為新的定價模式，並對這種比我們通常看到的更高的參與度感到興奮。另一部分則來自某些合約的重新談判，這些合約將於六月進行年度結算。因此，您將繼續看到類似的利潤率，但成長率可能不會像我們從第三季開始的年化成長率那麼高，顯然。

Okay. So Paul, I'll hop back in queue. Thank you.

好的。所以保羅，我會重新排隊。謝謝。

Jason Kreyer, Craig-Hallum.

賈森·克雷爾，克雷格·哈勒姆。

Thank you. And I just wanted to focus a little bit more on the of the redemptions that we're talking about historically if we look at the model, the proportion of incentives has been in a pretty tight band that moved out of that band in this quarter. And you're optimistic that redemptions is a positive leading indicator. I'm just I'm curious at how that number moves so much in the quarter and if we need to rethink the ratio of redemption versus billings going forward, and yes, a similar answer to prior.

謝謝。我只是想更多地關注我們歷史上討論的贖回，如果我們看一下這個模型，激勵的比例一直處於一個相當嚴格的範圍內，並在本季度脫離了這個範圍。您樂觀地認為贖回是一個正面的領先指標。我只是很好奇這個數字在本季度如何變化如此之大，以及我們是否需要重新考慮未來贖回與帳單的比率，是的，與先前的答案類似。

I think for Q2, at least I would consider similar model of redemptions on billings as a percentage. So this is really a testament to the product changes we're making on 80 E. better targeting and optimization of our ranking capabilities. And so as you know, people are making changes to the US in terms of our bank partners on the widget moving us if this is really driving higher engagement, it's all good for on the future, but it may take a while for us to get those budgets on to match the engagement that we're seeing. Okay.

我認為對於第二季度，至少我會考慮以百分比計算類似的帳單贖回模型。因此，這確實證明了我們在 80 E 上所做的產品變更。如您所知，人們正在對美國的銀行合作夥伴進行小部件方面的改變，如果這真的能推動更高的參與度，這對未來來說都是好事，但我們可能需要一段時間才能實現這些預算與我們所看到的參與度相符。好的。

And if you're consuming budgets at a more rapid pace, I think you've talked about that a couple of times. It would seem that if you're driving successful campaign performance, you're still delivering on those campaigns at a more rapid pace. It would seem a pretty easy argument to go back to those marketers and be able to fill budgets after those campaigns and more quickly, am I wrong to think that?

如果您以更快的速度消耗預算，我想您已經討論過幾次了。看起來，如果您正在推動成功的行銷活動績效，那麼您仍然會以更快的速度交付這些行銷活動。回到那些行銷人員那裡，並能夠在這些活動之後更快地填補預算，這似乎是一個相當簡單的論點，我的想法是錯的嗎？

No, we agree on. Obviously the Q1 we had low transparency into this, but we now are understanding how our models are working better on. I think we're investing in our sales team significantly more to trying to capture more of these budgets and focus more on selling and less on account management. So we are investing in the sales team and also an agency to capture more budgets as we're opening up more engagement for our brands and general cream. I don't know if you have anything you want to add.

不，我們同意。顯然，第一季我們對此的透明度較低，但我們現在正在了解我們的模型如何更好地工作。我認為我們對銷售團隊的投資明顯更多，是為了爭取更多的預算，更專注於銷售，而不是客戶管理。因此，我們正在投資銷售團隊和代理商，以獲取更多預算，因為我們正在為我們的品牌和普通奶油提供更多參與。不知道你還有什麼想要補充的嗎？

No. I mean, this is a good question, Jason. And clearly, it's a very positive thing that we're driving more engagement in the program, which is driving more redemptions. It's obviously good for our bank partners. It's good towards advertisers. There's a timing difference here with regards to our teams being able to go back and get the budgets in the timeframes that we're talking about. But longer term, it's very healthy for the program.

不，我的意思是，這是一個好問題，傑森。顯然，我們正在推動更多人參與該計劃，從而推動更多兌換，這是一件非常積極的事情。這顯然對我們的銀行合作夥伴有利。這對廣告商來說是件好事。對於我們的團隊能夠返回並在我們討論的時間範圍內獲得預算而言，存在時間差異。但從長遠來看，這對該計劃來說是非常健康的。

And on the surface, it kind of seems like you're driving more redemptions, but you're driving more redemptions at a greater cost to the model. That's the part of this that I'm kind of struggling with. And I'm struggling to gain an understanding of that just a near term issue? Or is it a longer-term evolution?

從表面上看，您似乎推動了更多的兌換，但實際上您以更高的模型成本推動了更多的兌換。這就是我正在努力解決的部分。我正在努力理解這只是一個近期問題？還是一個更長期的演變？

No, I think it's very clearly a longer-term evolution. And I would say and we have been signaling this for a very long period of time. From the first call since I joined 18 months ago, we basically said that it was really important for us to drive further engagement in the program. Again, engagements rates were low and that growing engagement is positive for our bank partners and that it's much more aligned with what they want much more aligned with providing consumers with the benefits they should have for the program. It's better aligned with driving additional budget for advertisers. What needs to come with it is us continuing to negotiate rev share agreements with our banking partners to ensure that and the gains that they're getting from people consuming more and therefore, spending more on the cards is a net benefit for us as well. So I think longer term, you would see that as we continue to grow billings, are we going to hopefully continue to drive a lot more redemptions but we should keep more in adjusted contribution. So you're going to see some differences in the economics of the business as a whole. But we think that we can manage that in a very healthy manner going forward.

不，我認為這顯然是一個長期的演變。我想說，我們很長一段時間以來一直在發出這一信號。從我 18 個月前加入以來的第一次電話會議開始，我們基本上就表示，推動進一步參與該計劃對我們來說非常重要。同樣，參與率很低，而不斷增長的參與度對我們的銀行合作夥伴來說是積極的，而且它更符合他們想要的東西，更符合為消費者提供他們應該從該計劃中獲得的好處。它更適合為廣告商增加額外預算。隨之而來的是我們繼續與銀行合作夥伴談判收益分成協議，以確保他們從人們更多消費中獲得的收益，因此，更多的信用卡支出對我們來說也是淨收益。因此，我認為從長遠來看，您會看到，隨著我們的帳單繼續增長，我們是否有望繼續推動更多的贖回，但我們應該保留更多的調整後的貢獻。因此，您會看到整個企業的經濟效益有些差異。但我們認為未來我們可以以非常健康的方式管理這一點。

Okay. Thanks for taking the questions.

好的。感謝您提出問題。

Jacob Stephen, Lake Street Capital Markets.

雅各史蒂芬，湖街資本市場。

Hey, guys. Thanks for taking my question. Maybe for Jim, if you could just kind of help us think about where you're investing in kind of the agency side of the business, it's not directly related to headcount or maybe just kind of help us think about some of those investments.

大家好。感謝您提出我的問題。也許對吉姆來說，如果你能幫助我們考慮一下你在代理商業務方面的投資，它與員工人數沒有直接關係，或者可能只是幫助我們考慮其中一些投資。

Yes, as Alex has mentioned in the call, and thanks for the question as AXIS I mentioned in the call earlier, there's several areas in which we invest in the business, as I mentioned as well in my remarks, we are investing in our tech and product teams to ensure that we continue to innovate and providing the right products to our banks and to advertisers about what we have also identified that there's several areas in terms of our sales teams in which we needed to reinvest. We talked about in the last quarter about our investments in the restaurant and retail sectors. And at present we continue to invest in our account management team so that we can service our clients better, but also service more customers. And one area which we had not invested for a while was agency team. And we think that our agencies can be a big driver for growth for us in future where we can get many more accounts. So it was the headcount investment here that you're talking about. But we definitely want to want to be able to, again, more more budgets by the agencies in the future.

是的，正如亞歷克斯在電話中提到的那樣，感謝我之前在電話中提到的AXIS 問題，我們在業務上投資了幾個領域，正如我在演講中提到的，我們正在投資我們的技術和產品團隊，以確保我們繼續創新，並為我們的銀行和廣告商提供正確的產品，我們還發現，就我們的銷售團隊而言，我們需要在多個領域進行再投資。我們在上個季度談到了我們在餐飲和零售領域的投資。目前我們繼續投資我們的客戶管理團隊，以便我們能夠更好地服務我們的客戶，同時也服務更多的客戶。我們有一段時間沒有投資的一個領域是代理團隊。我們認為我們的代理商可以成為我們未來成長的重要推動力，我們可以獲得更多的客戶。所以你所說的是人員投資。但我們絕對希望未來各機構能夠提供更多預算。

Okay. That's helpful. And then maybe just kind of talk about the self-serve platform. How far along are we in kind of the development of that platform? Is that ready to go? Or is there still some work to be done there.

好的。這很有幫助。然後也許只是談論自助服務平台。我們該平台的開發進展到什麼程度了？準備好了嗎？或者那裡還有一些工作要做。

Can you be more specific?

你可以說得更詳細點嗎？

Are you talking about what we mentioned last quarter, which was an automated dashboard or some of the longer-term plans for self-serve platform for advertisers to book, and it's looking more more at the longer term, kind of in a tech enablement and the self-serve side, which caters more to an agency.

您是否在談論我們上季度提到的內容，這是一個自動化儀表板或一些供廣告商預訂的自助服務平台的長期計劃，它更多地著眼於長期，有點像技術支援和自助服務方面，更多地迎合代理機構的需求。

Yes. So I mean, I'll cover both just in case the first one, the automated dashboard side, which I think is really important to surface insights to our customers, which will be also very important for our agency customers well will essentially have about 10% of our customers having access to automated insights by the end of Q2, and we plan a full rollout by the end of the year itself. So self-serve overall, with regards to the ability to book budgets without intervention from team will take longer. That's part of the reason why we're also investing in account management acquisition is obviously on our roadmap longer-term, but but probably not something that we'll get to this year.

是的。所以我的意思是，我將涵蓋這兩方面，以防萬一第一個，即自動化儀表板方面，我認為這對於向我們的客戶提供洞察力非常重要，這對於我們的代理客戶也非常重要，基本上將有大約10到第二季末，我們的客戶將獲得 % 的自動化見解，我們計劃在今年年底之前全面推出。因此，總體而言，自助服務，在沒有團隊幹預的情況下預訂預算的能力將需要更長的時間。這就是為什麼我們也投資於客戶管理收購的部分原因，這顯然是我們的長期路線圖，但可能不是我們今年能實現的目標。

Okay, got it. Maybe just switching over to bridge last quarter. I think we talked about a large new restaurant customer joining the platform. It sounds like you might have had some customer churn, but what can we kind of expect a growth rate here in 2024.

好，知道了。也許上個季度才切換到橋接。我想我們討論過一個大型新餐廳客戶加入這個平台。聽起來您可能會出現一些客戶流失，但我們對 2024 年的成長率有何預期？

And so just to be clear, the large restaurant customer we mentioned last time was on Cardlytics, not with regard to bridge with regards to bridge. Obviously, we are reinvesting in the product. We feel very confident that and we have a long-term asset Enbridge. However, we have to rebuild a lot of the technology that was there from a bridge perspective. And importantly, as we've discussed over the last several quarters, are we investing in repo, which is our retail media network as well to provide not only the ability to get the insights that our customers want, but also have the ability to target customers across the broader landscape. And so we're making we're making the investments now and I don't want to give you some growth rates with regards to report. We don't report specifically on this. We don't give guidance specifically on this, but I can be very confident that we're playing in a very large market there, an area that's really expanding, but we have the right foundational elements with regards to the engineering infrastructure, we have the go-to-market resourcing now we've onboarded a number of regional grocers that give us line of sight to 100 million profiles by the end of the year and therefore that we have the scale to drive significant growth. But I'll give you a split specific number on the growth rates we expect.

需要明確的是，我們上次提到的大型餐廳客戶是在 Cardlytics 上，而不是關於橋接器。顯然，我們正在對該產品進行再投資。我們對此非常有信心，並且我們擁有安橋的長期資產。然而，我們必須從橋樑的角度重建許多現有的技術。重要的是，正如我們在過去幾個季度所討論的那樣，我們是否投資了 repo，這也是我們的零售媒體網絡，不僅能夠獲得客戶想要的見解，而且能夠定位目標更廣泛領域的客戶。因此，我們現在正在進行投資，我不想向您提供有關報告的一些成長率。我們對此不作具體報道。我們沒有專門就此提供指導，但我可以非常有信心，我們正在那裡一個非常大的市場，一個正在真正擴大的領域，但我們在工程基礎設施方面擁有正確的基礎要素，我們有進入市場的資源現在我們已經加入了一些區域雜貨商，這使我們能夠在年底之前獲得1 億個資料，因此我們有能力推動顯著成長。但我會給你一個關於我們預期成長率的具體數字。

Okay, understood. Thanks.

好的，明白了。謝謝。

I'm showing no further questions at this time. I would now like to turn it back, Karim for closing remarks.

我目前沒有提出任何進一步的問題。我現在想轉回來，卡里姆作結束語。

Thank you very much, and thank you, everyone, for joining us today. We look forward to discussing our second quarter results on the next earnings call.

非常感謝你們，也謝謝大家今天加入我們。我們期待在下一次財報電話會議上討論我們的第二季業績。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。